Max Healthcare Reports Strong Q2 FY25 Results, Expands Footprint in NCR

Key Takeaways from Max Healthcare Q2 FY25 Results

• The company expanded its presence in NCR with the operational launch of Max Super Speciality Hospital (MSSH) in Dwarka and acquired a controlling stake in Jaypee Healthcare Ltd., marking its entry into Noida. 
• Max Lab, the non-captive pathology division, generated INR 47 crore, marking a 21% YoY rise, while Max@Home’s revenue grew by 24% YoY to INR 53 crore, driven by demand for services like physio and critical care.
• Clinical highlights include completing 3,000 liver transplants, 4,333 kidney transplants, and 1,884 bone marrow transplants, with notable advancements like robotic-assisted CABG and super-microsurgery for complex cases.
• Max Healthcare is actively investing in research with 124 ongoing clinical trials and collaborations with renowned institutions like Boston University and IIT Bombay.

Operating EBITDA for the quarter reached INR 566 crore, a 14% YoY growth, and Profit After Tax (PAT) stood at INR 349 crore. Excluding a net loss of INR 26 crore from its new Max Super Speciality Hospital (MSSH) in Dwarka, PAT was INR 375 crore, marking steady profitability.

During the quarter, MHIL commenced operations at its new 303-bed greenfield MSSH Dwarka facility, positioned as a tertiary and quaternary care provider for over 1.2 million residents in South West Delhi. The company also acquired a 63.65% controlling stake in Jaypee Healthcare Ltd. (JHL), which operates a 500-bed tertiary care hospital in Noida and a 200-bed secondary care facility in Chitta, Bulandshahr. The acquisition marks MHIL's strategic entry into the Noida healthcare market. 

The hospitals acquired in Q4 FY24 in Nagpur and Lucknow were fully integrated into MHIL’s network, posting strong performance with combined revenue and EBITDA growth of 32% and 90% QoQ, respectively.

In addition to its hospital operations, Max Lab, MHIL’s non-captive pathology business, recorded gross revenue of INR 47 crore, growing 21% YoY and expanding its services across 50 cities. Max@Home, the company's home healthcare segment, achieved revenue of INR 53 crore, up 24% YoY, driven by increased demand for physio and rehab, critical care, and pathology services. The company’s EBITDA per bed averaged INR 74.5 lakhs, maintaining stable efficiency, while bed occupancy reached 81%, with OBDs rising by 18% YoY. 

Free cash flow from operations amounted to INR 464 crore, with INR 217 crore allocated toward ongoing expansions and upgrades. Net cash reserves stood at INR 313 crore, up significantly from the previous quarter, with INR 146 crore earmarked for dividends.

In clinical advancements, Max’s hospitals reached key milestones, including 3,000 liver transplants, over 4,300 kidney transplants, and around 1,884 bone marrow transplants to date. The group also pioneered several procedures, such as robotic-assisted coronary artery bypass grafting (CABG) at Nanavati Max Hospital, and super-microsurgery for lymphedema at Max Saket. 

The healthcare provider is also actively engaged in research, with 124 ongoing clinical trials and collaborations with prestigious institutions like Boston University, Imperial College London, IIT Bombay, and Pfizer. Publications and grants are growing, with 112 articles published in Q2 FY25 and multiple partnerships to foster academic growth.

About Max Healthcare Institute Limited

Max Healthcare has 22 centres in India, with around 5,000 beds and a strong presence across North India. It encompasses the tertiary and quaternary care hospitals of NCR at Saket, Patparganj, Dwarka, and Noida and has centres in Mohali, Mumbai, and Dehradun. Besides, homecare and diagnostic brands Max@Home and Max Lab have now expanded its service reach further through multiple touchpoints.

Key Takeaways from the Financial Performance

• Muthoot Microfin’s Assets Under Management (AUM) grew by 15.2% YoY, reaching ₹12,518 crore in Q2FY25.
• Muthoot Microfin expanded its borrower base by 7.7% YoY, reaching 34 lakh borrowers.
• The company’s branch network grew by 18.9%, with 31 new branches added, bringing the total to 1,593.
• The southern region now represents 50% of the company’s portfolio following its expansion into Telangana and Andhra Pradesh.

The company’s Assets Under Management (AUM) increased by 15.2% year-on-year (YoY), rising from ₹10,867 crore in Q2FY24 to ₹12,518 crore in Q2FY25. Total income grew by 18.0% YoY, from ₹565 crore to ₹667 crore. Net Interest Income (NII) also saw an increase of 18.1% YoY, moving from ₹338 crore to ₹399 crore. The Pre-Provision Operating Profit (PPOP) rose by 26.1% YoY, from ₹187 crore to ₹236 crore.

Despite these positive trends, the Profit After Tax (PAT) experienced a decline of 43.8% YoY, decreasing from ₹109 crore to ₹62 crore. This decline was attributed to an additional macro-enabled overlay provision of ₹31 crore made in response to industry concerns and potential disruptions caused by floods or political activism.

The company reported a Gross Non-Performing Asset (GNPA) ratio of 2.70%, up from 2.37% in the previous year. The Net NPA (NNPA), net of Stage III provisions, stood at 0.97%, compared to 0.88% last year. Muthoot Microfin maintained a robust liquidity position with ₹706 crore in unencumbered cash and cash equivalents, which is approximately 6% of total assets, alongside unutilised sanctions totalling ₹3,566 crores.

The borrower base grew by 7.7% YoY, increasing from 32 lakhs to 34 lakhs across a network of 1,593 branches, which reflects an 18.9% increase in branch count as the company added 31 new branches during the quarter. Notably, the southern region now constitutes 50% of the company’s portfolio as it expands into two new states—Telangana and Andhra Pradesh.

Speaking on the performance, Mr. Thomas Muthoot, Managing Director of Muthoot Microfin, commented- "Amid recent industry challenges, Muthoot Microfin delivered a solid performance this quarter, achieving a 15.2% year-on-year increase in our Gross Loan Portfolio, now at ₹12,518 crore. We also added 31 new branches during this period. Our disciplined lending practices, backed by robust underwriting standards and prudent NATCAT policies, have driven sustainable portfolio growth while preserving asset quality. This quarter, we maintained a GNPA of 2.70% and NNPA of 0.97%, underscoring the strength of our portfolio. As we look ahead, we are prepared to accelerate our growth trajectory in this evolving industry landscape. With the implementation of SRO guardrails, we are committed to upholding high standards that will further strengthen stakeholder confidence and enhance the industry’s reputation.” 

Commenting on the financial results, Mr. Sadaf Sayeed, CEO, of Muthoot Microfin, said- “The company has cautiously inched up disbursements to Rs. 2,674 crores in the September quarter, up from ₹2,204 crores in the previous quarter and returned to similar levels as last year. We expect growth to reaccelerate in the coming quarters with the usual seasonal upswing coupled with our focus on harnessing existing customers and strengthening our core geographies. Our asset quality remains stronger than our peers led by our core mature southern markets and our robust underwriting and collection practices. During Q2, we have gone a step further and adopted a stance of being far more conservative providing additional Macro-enabled overlay of 31.2 crore given bulging industry concerns. This increase in provisioning has resulted in creating a Rs.153cr surplus to IRAC prudential norms. Our willingness to invest against profitability has negatively impacted our ROA during the quarter which has gone down to 2.00%. We continue to underpin our ambition of industry-leading returns and recalibrate our FY25 ROA guidance to 3.0-3.5% acknowledging the uncertainty prevailing within the industry while maintaining a continuous focus on balancing growth, profitability, and liquidity.”

About Muthoot Microfin Limited

Muthoot Microfin Limited, part of the Muthoot Pappachan Group, is a leading listed microfinance institution in India with over 138 years of legacy. The company focuses on promoting entrepreneurship among women in rural areas by providing income-generating microloans. As of September 30, 2024, Muthoot Microfin serves 3.4 million active customers through 1,593 branches across 20 states and 369 districts, with a Gross Loan Portfolio (GLP) of ₹12,518.5 crore. It is also a part of the S&P BSE Financial Services Index.

Key Takeaways from the Announcement

• Hero MotoCorp showcased its new product lineup at EICMA 2024, including the Xpulse 210, Xtreme 250R, and Karizma XMR 250 motorcycles, and the VIDA Z electric scooter, marking a significant milestone in its global mobility vision. 
• The company is set to enter European and UK markets by mid-2025, expanding its global footprint with products tailored to these regions and leveraging its European Tech Centre for R&D advancements. 
• The company continues to uphold its “Make in India for the World” ethos, remaining a global leader in motorcycles and scooters while actively investing in innovative mobility solutions for future growth.

The Executive Chairman, Dr. Pawan Munjal, emphasised Hero’s dedication to producing reliable and resilient products under the "Make in India for the World" ethos, a core principle guiding Hero’s operations and global ambitions. The company also announced plans to expand into multiple European markets and the UK by mid-2025, with the launch of its new VIDA Z electric scooter, to be followed by high-capacity motorcycles. 

At EICMA, Hero MotoCorp unveiled three premium motorcycles—the Xpulse 210, Xtreme 250R, and Karizma XMR 250 — each tailored for distinct riding styles. 

The Xpulse 210, developed with input from Hero MotoSports, is an adventure motorcycle with a powerful 210cc DOHC liquid-cooled engine, designed for off-road and city riding. The Xtreme 250R, aimed at street enthusiasts, boasts a 250cc liquid-cooled engine with a 4-valve system, offering peak power and torque with enhanced stability and grip for swift performance. The Karizma XMR 250, a fully faired sports motorcycle, features a 250cc liquid-cooled DOHC engine, integrated with design elements like racing-inspired winglets and height-adjustable handlebars for ergonomic comfort and agility. 

Complementing this range, the VIDA Z electric scooter is designed for global appeal with advanced features such as multiple charging modes, a removable battery, and connected tech through the MY VIDA App.

Hero MotoCorp established alliances with distributors in Italy, Spain, France, and the UK as it looked to strengthen its growth within the European expansion. Hero would utilize the research and development from its German Tech Centre in designing its products and technologies for enhancements to existing and new offerings according to the European marketplace's requirements. Expansion would eventually help Hero to be the leader of the globe for two-wheeler manufacturers.

Hero MotoCorp operates in 48 countries of Asia, Africa, and Latin America, and it has retained global leadership since its inception, selling over 120 million motorcycles and scooters.

About Hero MotoCorp Limited

Headquartered in New Delhi, Hero MotoCorp Ltd. is the world’s largest manufacturer of motorcycles and scooters by annual unit sales, a title it has held for 23 years. Since its founding, the company has sold over 120 million two-wheelers worldwide. With a presence in 48 countries across Asia, Africa, and Latin America, Hero MotoCorp operates eight manufacturing facilities—six in India and one each in Colombia and Bangladesh. Its research and development centres, the Centre for Innovation and Technology (CIT) in India and Tech Centre Germany (TCG) near Munich, drive innovation. Hero MotoCorp is also a prominent sponsor of various sports, including golf, football, field hockey, cricket, and motorsports, with golf legend Tiger Woods as its global corporate partner.

Key Takeaways from the Announcement 

• ISB 2001 demonstrated an impressive ORR of 75% in relapsed/refractory multiple myeloma patients with a strong safety profile.
• The Phase 1 data showed no dose-limiting toxicities and minimal adverse effects, indicating good tolerability for ISB 2001.
• IGI will present data on both ISB 2001 and ISB 1442, its leading candidates, at the ASH Annual Meeting, highlighting advances in multiple myeloma treatment.

This first-in-class tri-specific antibody therapy targets BCMA and CD38 on multiple myeloma cells as well as CD3 on T cells and has shown favourable results in patients with relapsed/refractory multiple myeloma (r/r MM). The trial data demonstrates that ISB 2001 achieved a strong overall response rate (ORR) of 75%, with a positive safety profile. 

Dr. Lida Pacaud, Chief Medical Officer at IGI, highlighted that while recent treatments have expanded options for multiple myeloma patients, there remains a need to overcome resistance mechanisms that limit effectiveness. The promising results from ISB 2001 indicate its potential to address these challenges, especially for patients who have already undergone multiple treatments.

The data presented will focus on the dose-escalation stage of the Phase 1 study, capturing results through July 2024. Key findings include an ORR of 75% in efficacy-evaluable patients, with one stringent complete response marked as MRD-negative. The study’s safety results also showed no dose-limiting toxicities, only one adverse event above Grade 2, and no treatment discontinuations due to adverse effects. 

The ASH presentation schedule is as follows: ISB 2001’s oral presentation will take place on December 9, 2024, at 5:45 PM at the San Diego Convention Centre, Hall B, presented by Dr. Hang Quach, Professor of Hematology at the University of Melbourne. Additionally, IGI will present a poster for ISB 1442, a biparatopic CD38 x CD47 bispecific antibody targeting synthetic immunity in r/r MM, on December 8, 2024, from 6:00-8:00 PM at the San Diego Convention Centre, Halls G-H.

About ISB 2001 and ISB 1442

ISB 2001 is a groundbreaking trispecific approach targeting two specific receptors of multiple myeloma cells, also engaging T cells, using proprietary BEAT technology by IGI to minimize off-target effects. ISB 1442, similarly developed using BEAT technology, is a biparatopic, bispecific antibody that can dually target to induce an immune response against the cancer cells in r/r MM. Both drugs are in clinical trials to assess their safety and efficacy.

About Ichnos Glenmark Innovation (IGI)

Ichnos Glenmark Innovation is an alliance between Ichnos Sciences and Glenmark Pharmaceuticals, aiming to advance oncology treatments. Combining Ichnos’ expertise in biologics with Glenmark’s small molecule research, IGI brings together over 150 scientists across innovation centres in the U.S., Switzerland, and India to develop pioneering therapies for cancer.